The 12-Month Rate of Returns Over a Nine Year Period

question 71

Short Answer

The 12-month rate of returns over a nine year period of a particular stock is 0.099,-0.289,0.089,0.226,0.041,0.161,0.064,-0.029 and 0.022.The geometric mean rate of return for this stock is _____________ .

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Definitions:

Net Investment

The total amount of investment in new capital assets minus the depreciation on existing assets, indicating growth in an economy's productive capacity.

Inventory Investment

The change in the stock of goods held by a business for resale or production over a period, part of the investment component in GDP calculation.

Depreciation

The method of spreading out the expense of a physical asset over its lifespan.

Capital Stock

The total amount of physical goods or financial assets that a company or country uses in producing goods or services.